Removing financial bottlenecks for sustainable development of the mineral industry

Delegates attending the Workshop on removing financial bottlenecks for sustainable development of the mineral industry.

The event attracted a large number of delegates from central ministries, branches, research institutes, mineral associations, consulting companies and large mining enterprises. The workshop presented the current situation and shared recommendations to improve financial policies, unlock resources and promote sustainable development of the mining industry.

Speaking at the opening of the workshop, Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of VCCI, said: The mineral industry not only contributes greatly to GDP and the state budget but is also the foundation of many important fields such as energy, new materials, defense industry and high technology.

In that context, financial policy is considered the “backbone” that directly affects the competitiveness and sustainable development of the industry. However, the level of financial obligations much higher than the international level is creating risks, reducing competitiveness and attracting investment.

At the workshop, Mr. Bui Ngoc Tuan, Deputy General Director of Deloitte Vietnam Tax Advisory Services, commented: Vietnam's mining industry is shouldering total tax and fee obligations of up to about 25% of revenue, much higher than the average of 5-10% in Australia, the US or Malaysia. In particular, corporate income tax is up to 50% for tungsten and rare earth mining, twice as high as the standard rate of 20%.

Representative of Nui Phao Company spoke at the Workshop.

Mr. Phan Chien Thang, Deputy General Director of Nui Phao Mineral Exploitation and Processing Company Limited (Nui Phao Company), said: Mineral exploitation enterprises are currently burdened with more than 14 types of taxes and fees, accounting for nearly 30% of revenue. There are many overlapping revenues, such as resource tax and mineral exploitation rights fee; while other tax policies such as export tax, resource tax, and VAT are inconsistent with the orientation of encouraging deep processing.

Specifically, resource tax and mining license fees are of the same nature and are levied on the same subject, which is exploited mineral resources, causing businesses to be "taxed twice on the same resource value".

Sharing the same view, Dr. Nguyen Tien Chinh, Vietnam Mining Science and Technology Association, proposed to merge resource tax and mining license fee into one type managed by the Ministry of Finance , both to reduce administrative procedures and avoid overlap.

At the same time, Mr. Chinh emphasized the need to apply conditional incentive mechanisms and reduce resource taxes for enterprises investing in deep processing or recovering accompanying minerals.

After listening to the comments, VCCI representatives will synthesize the ideas to complete the policy recommendation report to submit to the Government and the National Assembly , as a basis for amending the legal framework for the mineral industry in the coming time.

This is also an opportunity for the Vietnamese mineral industry to accelerate technological innovation, develop sustainably, become a driving force for economic growth, and enhance national competitiveness.

Source: https://baothainguyen.vn/kinh-te/202510/thao-go-nut-that-tai-chinh-de-phat-trien-ben-vung-nganh-khoang-san-72d6dd0/